The vice president of manufacturing for W.C. Wood Company was reviewing a proposal to change the company’s packaging for its line of refrigerators and freezers. The proposal recommended a move from cardboard packaging to a combination of styrofoam and plastic wrap. The transition to this type of packaging would save on material and labor costs, and w the result in a significant reduction of damages due to the increased stability package, but a substantial capital investment … Read more »

The vice president of manufacturing for W.C. Wood Company was reviewing a proposal to change the company’s packaging for its line of refrigerators and freezers. The proposal recommended a move from cardboard packaging to a combination of styrofoam and plastic wrap. The transition to this type of packaging would save on material and labor costs, and result in a significant reduction of damages due to the increased stability package, but a significant investment required to start the change. The equipment needed to convert to the new design would be to install a six-month lead-time and a week, preferably on the company summer shutdown. The vice president needed to assess its ways of converting all rows at once or transition to the new packaging system in stages to make his decision.
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David Wood
Source: Ivey Publishing
9 sides.
Release Date: 03 September 2010. Prod #: 910D10-PDF-ENG
W.C. Wood Company (A) HBR case solution

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